On January 1, 2014, an investor acquired 20% interest in an investee enabling the investor to exercise significant influence over the investee. On this date, the identifiable assets and liabilities of the investee are recorded at fair value. During the year, the investee reported net income of P2,000,000 and paid no dividend. Also, during the year, the investee sold inventory costing P200,000 for P300,000 to the investor. The inventory is unsold by the investor on December 31,2014. What amount is to be recorded as the investor’s share in net income?

On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,00O. Pop's net income for the years ended December 31, 2020, and December 31, 2021, were $16,000 and $54,000, respectively. On July 30, 2020, Pop declared and paid a dividend of $66,500. On December 31, 2020, the fair value of the Pop stock owned by Groove had increased to $72,000. How much should Groove show in the 2020 income statement as income from this investment? Multiple Choice $18,000. $9,975. $24,000. $27,975.

Rohan Limited is a privately owned company and has 31 December year-end. The company elected to apply ASPE for its financial reporting. On January 1, 2017, Rohan Limited purchased 30 shares of the 100 outstanding common shares of another privately held company, Bassett Company, for $165,000 cash. Rohan Limited has significant influence as a result of this acquisition. At that date, the statement of financial position of Bassett Company reflected the following: Non-depreciable assets $155,400 (fair value, $199,000); Depreciable assets (net), $178,000 (fair value, $250,000); and Total liabilities, $101,900 (book value equaled fair value); The depreciable assets had remaining useful life of 5 years and had been depreciated using straight-line method. On December 31, 2017, Bassett Company reported net income of $88,400. Bassett Company also declared and paid cash dividend in the amount of $20,000 on December 31, 2017. Goodwill was not impaired over the time period in question. Required:…

On January 1, 2021, Pepita Corporation purchased 25% of the outstanding voting shares of Pablito Supplies common stock for $210,000 cash. On that date, Pablito's book value and fair value were both $840,000. The equity method is deemed appropriate for this investment. Pablito's net income reported on December 31, 2021, was $100,000. During 2021, Pablito also paid cash dividends in the amount of $30,000. Required: Prepare the journal entries necessary to record the above information on Pepita Corporation's books during 2021.

Sagar

On January 3, 2023, Sheppard Corporation purchased 15% of Meredith Corporation's common stock for $62,000. Meredith's net income for the years ended December 31, 2023 and 2024 were $18,000 and $56,000 respectively. Meredith declared no dividends during 2023; however, during 2024, the company declared a $70,000 dividend. On December 31, 2023, the fair value of Meredith's stock that Sheppard Corporation owned had increased to $73,000; in 2024, it increased again to $79,000. What will be the carrying value of the investment at the end of December 31, 2024? Group of answer choices $79,000 $135,000 $73,000 $62,000

On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for $55,000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $11,000 and $56,000, respectively. During 2020, Ranger declared and paid a dividend of $67,500. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $72,000. How much should Howdy Doody show in the 2020 income statement as income from this investment?    $11,475.            $23,000.            $17,000.            $28,475.

On January 1, 2019, Halstead, Inc., purchased 76,000 shares of Sedgwick Company common stock for $1,527,000, giving Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value acquired was attributed solely to goodwill. Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period. Annual Cash Dividends (paid quarterly) $104,000 Net Income $417,000 571,000 613,000 2019 2020 141,000 2021 156,000 On July 1, 2021, Halstead sells 12,160 shares of this investment for $29 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence. Determine the amounts that would appear on Halstead's 2021 income statement relating to its ownership and partial sale of its investment in Sedgwick's common stock. (Round your intermediate calculations to the nearest whole number.) As total…

BuyCo, Inc. holds 25 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. For 2017, Marqueen reported earnings of $100,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $50,000, which it then sold to BuyCo for $80,000. At the end of 2017, BuyCo continued to hold merchandise with a transfer price of $32,000.a. What Equity in Investee Income should BuyCo report for 2017?b. How will the intra-entity transfer affect BuyCo’s reporting in 2018?c. If BuyCo had sold the inventory to Marqueen, how would the answers to (a) and (b) have changed?

Lemon Ltd has a December 31 year end.  On January 1, 2018 Lemon acquires 4000 shares of Nike Inc at a cost of $150 per share.  Transaction cost is $1200.  The Investment is classified as available for Sale.  On December 31, 2018 the Fair Value of Nike share has decreased to $120/share.  On March 1, 2019 Lemon Ltd sells the shares for $135 per share. Transaction cost for the sale is $2000.  Record the  journal entries in the books of Lemon Ltd.